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OTTAWA — Finance Minister Joe Oliver says developments in the Ukraine and Iraq are endangering the global financial and economic recovery, particularly in still fragile Europe.[np_storybar title=”‘A completely different world’: ECB vows to ‘act swiftly’ to rescue Europe from deflation” link=”https://business.financialpost.com/2014/06/05/in-a-completely-different-world-ecb-vows-to-act-swiftly-to-rescue-europe-from-deflation/”%5DIn monetary lexicon, the European Central Bank has pulled the trigger and managed not to shoot itself in the foot.By targeting dangerously low inflation and chronically weak economic growth, eurozone policymakers — led by the always-colourful Mario Draghi — set tough new measures aimed at slashing interest rates almost to the bone. Read more [/np_storybar]The minister, who was nearing the conclusion of his trip to the United Kingdom, Germany and Poland, says he has been alerted by Europeans about mounting risks.He notes that the overall growth rate in Europe remains very low and the latest inflation reading was only 0.5%.“So there is a very real risk of deflation and the banking system is more fragile than we would like to see,” Oliver said Friday.“In this environment additional external shocks can be quite dangerous,” he added, citing the political tensions in the Ukraine and strife in Iraq that has led to a spike in oil prices.Despite unprecedented low interest rates, governments and companies are not investing, he says, and lenders have again started taking on risk in the search for yield.He says the gap in yields among countries and companies with very different credit ratings have narrowed, which “suggests that lenders are taking on more risk than they have before.”Oliver says Europeans are well aware of the challenges confronting them and that they will be discussed at the next G20 meeting in the fall.There is a very real risk of deflation and the banking system is more fragile than we would like to seeRelative to Europe, Canada’s banking system is doing well, as is the economy overall, he said.On Thursday, Canada’s financial system supervisor, however, expressed similar concerns about Canadian banks going out on the limb with risky loans.“While underwriting practices may be good today, past experience suggests that it could become very tempting in the current environment for mortgage lenders and insurers to ease up under the enchanting lull of the siren song of market share,” Mark Zelmer of the Office of Superintendent of Financial Institutions told a housing conference.Most analysts blame lax lending standards, particularly in the U.S. housing market, for the financial collapse of several American investment banks in 2008 that triggered the global recession.The Canadian Pressread more

by Dean Bennett, The Canadian Press Posted Mar 15, 2017 7:04 am MDT Last Updated Mar 15, 2017 at 7:40 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Alberta budget promising 10 new schools, and cash to replace, update 16 more EDMONTON – The coming Alberta budget will include funding for 10 new schools.Sources have told The Canadian Press that Thursday’s budget will also have money for nine replacement schools and seven modernizations.The projects are expected to create 6,800 brand new spaces and 6,000 replacement spaces in 15 municipalities.Those locations include Edmonton, Calgary, Airdrie, Bonnyville, Banff, Drayton Valley, and Grande Prairie.Education Minister David Eggen declined to confirm the information, but says the government is working to keep up with rising enrolments despite the downturn in the economy.He noted that last year, Alberta opened 61 new or modernized schools to create 23,000 new student spaces across the province.The province expects to finish 31 more projects by June to add 11,000 new spaces and another 7,000 modernized ones.Eggen said young families are staying in the province and putting down roots, particularly in suburban areas around Edmonton and Calgary.“Those people are buying houses and having kids, so it’s good for the long-term economy having a young population,” said Eggen in an interview Tuesday.“We’re the youngest in the country, age-wise.”He said the previous Progressive Conservative government fell far behind in building schools, but said a new system is now in place to get the projects off the ground, with quality control measures and incentives for builders who meet targets.There are currently 139 school projects in various stages of planning and construction.The budget comes as Alberta’s economy slowly begins to rebound from a drop in oil prices that drained billions of dollars from the government’s bottom line.Finance Minister Joe Ceci, speaking to reporters Tuesday, said the budget will continue to focus on spending for front-line services, but will also show how Alberta is working to reduce costs and lower the deficit.Ceci said while the economy shows signs of rebounding, Albertans still need help, and he said that makes a deficit budget inevitable.“Acting as a shock absorber does not mean that you throw Albertans and their ability to get services and programs out the window,” said Ceci.“We’re going to invest in the things that are necessary, and doing that means that we need to run a deficit. That’s not going to be a surprise for anybody, I think.”This year, Alberta is on track to run a $10.8-billion deficit. The interest on debt payments has surpassed $1 billion and government borrowing exceeds $32 billion.Progressive Conservative Leader Ric McIver said he’s skeptical the budget will have measures to reduce spending.“I’ll believe it when I see it,” said McIver.“I think you’re going to see them spending their brains out, borrowing their brains out and putting Albertans in a bigger hole than they’ve ever been in before.”Ceci made his comments at a traditional pre-budget photo-op where the finance minister presents new shoes to wear on budget day.This year, Ceci instead presented a new pair of soccer cleats to a youngster to symbolize Alberta’s commitment to families. Alberta Finance Minister Joe Ceci presents a new pair of soccer shoes to 11-year-old Yusef Moalim during a pre-budget photo opportunity in Edmonton, Alta., on Tuesday March 14, 2017. The new soccer shoes represent a more affordable lifestyle for families with the upcoming budget. THE CANADIAN PRESS/Jason Franson read more